Mix dry ingredients. In a sauce pan, slowly melt margerine, chocolate morsels, and peanut butter, stirring constantly. DO NOT BOIL. Add vanilla and cool. Pour sauce (about one third at the time) over cereal mix and mix until well coated. Pour into a large grocery bag and shake with the powdered sugar (about half box at the time). Store in tightly covered container. This makes enough for a crowd and is nice for gifts. It is a sweet version of the popular Nuts and Bolts. This was given to us Christmas 1991 by Mary Alice King of Dixie Union, Georgia.